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TMI Blog2007 (7) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... l No. E/2771/2005-SM - Final Order No. 1117/2007-SM(BR)(PB) - Dated:- 19-7-2007 - [Order per] - This appeal has been filed against the order of Commissioner (Appeals) dated 31-5-2005, upholding the order-in-original by which demand of duty of Rs. 95,079/- on clearance of scrap valued at Rs. 5,94,241/- cleared as "old and discarded machinery" was confirmed and a penalty of Rs. 20,000/- was impos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orn out pieces of machinery used in crushing sugar cane were required to be discarded as scrap, which was not dutiable at the relevant time. According to the assessee, the items were discarded only after they were used to a maximum extent and had lost their utility. Reliance was placed on the decision of the Tribunal in Hindalco Ind. v. CCE, reported in 2002 (144) E.L.T. in support of the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r and tear scrap arising during the use of the capital goods and as such did not fall within the ambit of Section 2(f) of the Act for the purpose of charging of duty. 5. Under the provisions of Rule 3(4) of Cenvat Credit Rules, 2001, it is only where the inputs/capital goods were removed "as such", that the reversal of credit of duty of demand should be asked by the Revenue. It is only from 16 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y both the sides, there was no question of any liability arising on the part of the appellant to pay amount equal to the duty leviable on the transaction, value of such scrap. The provision of Rule 3(4) of the Cenvat Credit Rules, 2002, required the manufacturer to pay amount equal to credit availed in respect of the capital goods removed "as such" from the factory. It is obvious that the worn out ..... X X X X Extracts X X X X X X X X Extracts X X X X
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